The technical team of Colombia’s central bank on Thursday raised its inflation outlook for 2023 to 9.8% from 9% previously, amid persistent inflation concerns.
On Tuesday the bank board held its benchmark interest rate at 13.25% for the fourth month in a row due to a slower-than-expected fall in consumer prices.
“These forecasts have a high level of uncertainty and include important upward risks,” the bank said in its quarterly monetary policy report, citing the potential impact of the El Nino Weather phenomenon.
Consumer prices will have risen 0.35% in October, according to the median estimate of analysts in a Reuters poll this week. That would take annual inflation to 10.60%, still far beyond the central bank’s 3% target.
Inflation expectations for full-year 2023 rose in the survey to 9.62%, from 9.3% the month before.
The change to the central bank’s inflationary forecast follows a revision to its economic growth estimate for the year.
On Tuesday, bank board chief Leonardo Villa said the bank expects Colombia’s economy to expand 1.2% this year, up from 0.9% previously.
Economic growth in 2024 is now seen at 0.8%, the report said, down from a previous estimate of 1%.
Source: Nasdaq
